Section 2: Imperial Consolidation, Trade And Commerce Flashcards
What were the benefits of the empire
Britain had control of colonial industries - reduced international competition, simple - common language and fixed exchange rates to the sterling. B, Imports - sourced raw imports e.g cotton , wool and timber to supply food. B of exports - benefited Britain’s favour, exports increased from 21.2% in 1871-75 , 37.2 % in 1913. India Pale Ale- developed for colonial conditions, ships and railway companies profited due to demand e.g Ugandan Railway.
40% of B. Investment took place, 3 x bigger than Germany overseas
What were the lack of benefit of the empire
Empire not main source of Britain’s trade, 37.2% exports went to colonies by 1913
Growing nationalism led to damaged trade, e.g India, 20% of British exports,strikes and boycotts
Food came from non colonial countries e.g Russia 4 wheat, cheap imperial products preventing developing own scientific enterprises, France and Russia synthetic rubber production,Britain still dependent for Africa and Asia
Tropical Africa accounted to 1.2% BT and Boer War 2 cost £250 million
Middle class faced increase tax burden
Investment in non colonial areas, USA, loans to foreign nations might provide bigger returns
Explain evidence of Investment in the empire
Colonial stocks act and loans act 1899 and 1900 facilitated a number of infrastructure projects e.g rail links to African interior from the ports of Lagos and Mombasa
Gold standard- Britain set standard for international monetary system, forcing other countries to adopt the gold standard
Worlds financial capital
What was imperial preference and its origins and opposition against it
Mercentalism replaced by free trade in the mid 19th century, free trade successful
Changing circumstance - industrial and trading development by USA, Japan. Trad with empire helped Britain prevent serious problems of agriculture depression- delayed regime of FT
Joseph Chamberlin - idea of trade protection, discussed 1902 colonial conference , dominions interested. Strategically reliable in times of emergency
Opposition - those who had links with non empire country opposed, some said empire completely not self sufficient, 1906 general election liberal Victory landslide
What was the aftermath of Imperial preference
Dominions disappointed when IP not implemented, looked for other trade agreements e.g Canada and Japan, British textiles and goods were boycotted and burned
Swadeshi against Raj 1905 reducing reliance against foreign goods
Outline John H Hobson views on empire
Ruling class incentive to employ public policy, extended field of personal investment e.g public forces
Empire only benefit capitalist
Investment oversea meant mass population remained poor
